Nomura launches US high yield bond strategy

Nomura Funds Ireland – US High Yield Bond Continuum Fund will be managed by Steve Kotsen

Stephen Kotsen Nomura Securities
Stephen Kotsen


Nomura Asset Management (NAM) has expanded its high-yield range through the launch of the Nomura Funds Ireland – US High Yield Bond Continuum Fund.

The Article 8 strategy will be run by NAM’s high yield boutique, Nomura Corporate Research and Asset Management (NCRAM).

The fund will be led by NCRAM managing director Steve Kotsen (pictured).

See also: Nomura launches corporate hybrid bond fund

The US High Yield Bond Continuum Fund is a variant of NAM’s $3bn (£2.4bn) US High Yield Bond Fund, which is the top-performing strategy in the IA USD High Yield Bond sector over the 12 months to 8 September, according to FE Fundinfo data.

Kotsen said: “The consideration of ESG criteria and sustainability goals fits perfectly with our ‘Strong Horse’ investment philosophy. We try to identify companies that are well positioned to generate free cash flows over the long term through the different phases of the economic cycle.

“For decades, interest rates have only known one general direction: down. With interest rates on the rise, bonds are once again becoming an increasingly attractive asset class to investors. 

“High-yield bonds bring diversification to a fixed income portfolio. Their leverage is almost as low as it has been for ten years. With our rigorous investment process, we aim to benefit from the higher yield, while minimising the risks of default.”

Last month, NAM launched a corporate hybrid bond fund open to investors across Europe.

The Nomura Funds Ireland – Corporate Hybrid Bond Fund aims to provide investors with exposure to high quality issuers with yields comparable to those of high yield bonds and is managed by NAM head of corporate hybrid bonds Julian Marks.

See also: Is an equity-bond market correlation ‘the new normal’?

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